Skip to content
Back to index
V1990-25 21 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo en especie

Point redemption does not allow 30% reduction for generation period exceeding two years

A company asks whether delivering products via an employee points system constitutes income in kind and whether the 30% reduction for generation periods over two years applies. The DGT states that income arises upon redemption and that such reduction does not apply.

The question raised

Whether the granting of points to employees is considered employment income in kind. Furthermore, the application of the reduction provided in Article 18.2 of the LIRPF in the event that a period exceeding two years is established for the redemption of points.

The DGT's ruling

The mere granting of points does not constitute employment income; rather, such income arises when the goods or services resulting from the exchange are delivered. To apply the reduction provided in Article 18.2 of the Personal Income Tax Law (LIRPF), the income must have a generation period exceeding two years and be attributed to a single tax period. In this case, the exigibility of the income is deferred until the moment of exchange, therefore there is no generation period exceeding two years that would allow for the reduction.

Book your free first meeting